As the marginal physical product of a variable input __________, the marginal cost __________.
A)increases; increases
B)increases; decreases
C)decreases; decreases
D)increase; remains constant

Question

Quizplus · Accepted Answer

As the marginal physical product of a variable input increases, it means that each additional unit of input is producing more output, which leads to a decrease in marginal cost because less input is needed to produce an additional unit of output.

As the Marginal Physical Product of a Variable Input __________